None of the indices finished the week in negative territory for the year

There were 5 new 52 week index highs this past week vs 9 the week before

The indices
finished the week mixed to higher with the DOW 30 turning in the
best performance by closing up 1.20% followed by the Utilities, up
1.08%. None of the other indices were able to close over 1%. Not very
deep in the bullish camp and with the RUT falling -1.19% we end up with
more of a bearish ending.

Are the
markets getting tired? I doubt it, but other factors such as North
Korea could cause investor fear to heat up and this alone would bring
the markets down, and once the ball is rolling it will be hard to stop
it.

This is not
a market to be buying in. That market was about a year to 18 months
ago. This market is one for caution and the one thing we do not want to
be is in the camp that waits too loooong to move out.

Yes,
Consumer confidence is the driver and is still in control, but this
could change if people feel there will not be a new tax
structure, or no fix for the Obama don't care, or a war with NOKO,
although a war will not be as bad as the Republicans doing nothing for
much longer.

This is a
hard market to figure since the new highs on the DOW 30 are because of
Apple & Boeing, while the other 28 do little. Yes, many stocks in
the DOW 30 have reached new highs but that was several weeks back. Only
a handful have reached a new high recently and they are the same ones
over and over. Not good for the bull.

I hate to
sound to gloom & doom but it is very hard to find a stock worth
picking up in this market. Even the ones climbing are doing so a little
bit at a time and this increases the risk/reward factor. Not enough
reward for the risk.

The best
bet is still to enter the markets with a bargain or a small stock.
Either one will limit the downside, assuming we have done are homework
and picked a strong bargain or small stock.

Big
money can be
made on small start up companies, but since most are scams we have to
be very
careful. Look for small companies trading over a quarter ($0.25) with
fewer shares outstanding and decent volume. These 3 items would be a
good start.

I am
currently recommending Powin Energy, last trade $2.50, off from $2.25 last week, as a place to be.
This is a stock with basically no sellers meaning its the one we want
to own. Click here to read my recommendation on Powin Energy.

AMD’s new
GPUs are going head to head with rival Nvidia Corporation’s
(NASDAQ:NVDA) and winning in price and performance. Meanwhile, AMD is
stealing market share from semiconductor giant Intel Corporation
(NASDAQ:INTC) on multiple fronts, with Epyc outperforming Intel
Broadwell server chips and Ryzen is grabbing market share from Intel’s
Core PC lineup.

We want to buy AMD on pullbacks but a big correction will bring the stock down quickly. Still, the longer term is looking good.

Looking at precious metals, after watching gold having trouble climbing,
with a total move of -$33.40 in June, due mostly to a stronger
dollar and the recent increasing of interest rates, the bombing in Syria
and a possibility of going to war with North Korea, we might want to
watch the metals a bit closer. One
thing about the metals would be they have been trading near the low end of
the trading range and haven't been able to get over $1300 since September of 2016.

Gold closed out the
week at $1,264.30, off -$4.70on the week and off -$4.70for August.
The $1250
level
for gold is a strong support/resistance level and closing over that
level could mean higher ground ahead. Gold traded back over the
$1200 level for 27 weeks after staying under it for 1 week. Gold was off -$123.60 for 2015 and up +$91.50 for 2016.

Oil closed out the week at $49.52, off -$0.27and off -$4.70for August. Oil was up +$91.50 in July.
Oil started climbing recently because of the decision by Russia and
Saudi
Arabia to curtailed production and had closed over $50 for 14 weeks, but recent news
tells us the stockpiles are quite
large, which in turn will make it hard for OPEC to have much control over pricing.

Avoid
oil companies as supply is great, oil stocks are overpriced and there
are few signs that higher oil should stay with us that long. Oil has a support level at $35 and I believe
there is a
strong possibility we will see it. The bottom line is,
backed into a corner, once the markets do decide to correct there will be no way of knowing how far down. A much bigger downward move than 10% to 20% will
be
needed.

Markets do not
go up forever and my SPREAD has been telling us the big OTC stocks have gotten so far ahead of the listed
stocks the correction will have to be a decent one.

Fear
of losing profits will be the driving force behind the coming correction and this fear will not going away soon. I
have been telling all to take profits and not because I feel the
markets are going to crash tomorrow, but because I believe the markets
are going nowhere over the near term, making the risk of holding
profits much bigger. Remember, we have to have a reason to hold a stock as well as a reason to buy one.

The table below shows how far the indices have moved
from the 52 week low.

The
table above shows 0 indices with less than 10%
away from the 52 week low compared to 0
the previous week.

The below table shows how far each index
is
off from the 52 week high vs the week before

There were 5 indices that reached a new 52
week high this past week vs 9
the week before. There is currently 0 indices in correction territory compared to 0the week before.

Since the SPREAD
is a leading index that has recently been reaching new all-time highs,
and should be cause for concern. It's always bullish to see a new
52-week/all-time
high, but what it really is telling us is the markets are very
overvalued.When the VL falls faster in this index, it is a
giant cautious sign for the near term markets
as it is a sign of an overbought market that is ready to turn down. Please keep in mind the SPREAD is a broad market and teaches us much.

Looking Forward

The indices
finished the week mostly higher but the bad news on the week was the
Russell 2000 & SPREAD lost over 1% on the week. This is a negative
because both lean heavily toward the OTC market and it is my belief
that the markets cannot rally without the big OTC stocks. On the other
hand, the Dow 30 continue to set new highs but it's doing so I'm just a
small basket of stock and again this is more bearish than bullish. Now
if we add going to war with North Korea the markets are starting to
look more like a correction is in the works. I do know the markets are
oversold and I do know that it's impossible to predict a correction but
I feel like we should take a safer stance and possibly lighten up on
profitable positions. We may even want to wait to buy the
bargain but this is an ideal time to look at the small stock because
they tend to move on their own no matter what the world economy does.
Find one with a good story and not not too many shares buy it. If we want to get into this market we have to look for bargains in
the small caps and special situations in the low-priced arena.

LOOK FOR

- VALUE - PRODUCT - OPPORTUNITY!

- Remember -

It is not what is "going" to happen that moves the markets,
but what investors "believe" is going to happen!

This is the kind of market where the smaller
companies and the newer companies may be the better place to be. Small
stocks tend to move on their own and not so much with current events. A
choice small stock is a great place to be in such confusing markets. If
the move is a good one, the smaller stock will climb at a greater
percentage, allowing a stronger return on fewer dollars.

The concept does work, but the
problem is finding the best and the correct stock to move into. Look
for a stock with a great story, because with small stocks the story is
what makes the difference.

Continue to look for stocks near the lower end of
the trading range with strong daily volume, and growing revenue, for
the best bargains. Avoid stocks that seldom have news and have stayed
down too long.

Two Very Important Rules To
Follow
"BUY LOW"
"HAVE PATIENCE"

Be sure to visit "The Past Week"
for a look at additional
information, stats and tables covering last week's markets.Clicking on "Market Comment" will take you there!

Be sure to visit "Monthly Gains &
Losses" for a look at the
past "monthly" performance on the indices going back to 1994.Clicking on the "Index Gains & Losses" will take you there!

Be sure to visit our "Spotlight Futures" for a look at metals, oil and currency
futures updated weekly.
Clicking on the "Spotlight Futures" will take you there!

Be sure to visit our weekly "Stocks to
Watch" section
for brief of updated opinions on several
Spotlight favorite's from the past.
Clicking on the "Stocks To Watch" will take you there!

"If in the right stock, at
the right price,
the market direction will mean little!"

Thereare
still many negatives with the economy, and the markets, so continue to
use caution and stick with value stocks for safety. Choose
wisely!

The
recommendations and updates in this week ahead may include "forward-
looking" statements as that term is defined in the Private Security
Reform Act of 1995, & therefore are subject to various risks &
uncertainties. There can be no assurance that actual results, business
conditions, business developments, losses & contingencies, and
local & foreign factors will not differ materially from those
suggested in the "forward-looking" statements as a result of various
factors, including market conditions, competition, advances in
technology, acquisitions, potential litigation, personnel changes,
capital availability, and all sorts of other factors. Do not make
investments based on the material provided in this article. Investors
should not make decisions based on any of the material featured here
without first consulting with their brokers and/or financial advisors.

J.R. Budke was a stock broker from 1981
to 2000, an options principle since 1982 and a branch office manager
since 1987. JR became inactive as a stockbroker on 12/31/99. J.R.
writes most of the articles and opinions for the Stocks in the
Spotlight. The stories and stocks found
on this site, or any "Stocks in the Spotlight" written material, are
the opinions of J.R. Budke, unless other wise stated, and should not be
considered as advice. You should not purchase any stocks solely on the
opinions found on the "Stocks in the Spotlight's" web site or in any of
its written material. You should also be aware that options are not for
everybody and carry a high degree of risk.

The "Stocks in the Spotlight" provides information only, this is not
meant to be a recommendation to buy or sell the profiled security, nor
is this an offer to buy or sell the security. The publishers of "Stocks in the Spotlight" are not
investment advisors and are not acting in any way to influence the
purchase or sale of the security.
Before purchasing or selling any security profiled, it is encouraged
and recommended that you consult a stockbroker or your registered
financial advisor. The reader must understand that the companies we
select may involve a high degree of investment risk. Potential
investors must understand that they may lose all or a portion of their
investment due to the risk involved. Some of the stocks covered on this
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